Another Ponzi Scheme Bites The Dust: New Jersey’s Devine Wholesale

Investors lost more than $2 million in Jenifer Devine’s fictitious “Devine Wholesale” company.

Between December of 2008 to September of 2010 Jenifer Devine contacted investors across the country telling them she’d fund her wholesale clothing and electronics business through their investments. Devine promised returns of up to 25 percent per investment and tempted investors to make thirty to sixty day investments towards the company.

Devine also showed some investors false and fraudulent inventory lists of products she was purportedly reselling. As a result of these solicitations, more than 15 investors sent over $8 million to Devine and Devine Wholesale during this time period. – Source.

Jenifer Devine has admitted and pled guilty that the company was not a legitimate business. Instead of investing money to purchase the promised clothes and electronics she used most of the funds to pay existing investors in true Ponzi fashion. Devine ended up spending a large portion of funds on herself including but not limited to Royal Caribbean cruises and name brand designer fashions such as Burberry, Gucci and Coach.

Devine pleaded guilty to the count of wire fraud which could land her 20 years in prison and a $250,000 fine or up to twice of the amount of gain to herself or the loss to victims as a result of criminal conduct. She received over $8 million during her scheme but investors “only” lost $2 million, which means she could potentially be ordered to pay $4 million back. Quite a large chunk of change.

She is scheduled to be sentenced on December 20, 2011.

We will post an update once a sentence has been made in this case. Has anyone fallen victim from this scam? We want to hear from you!

If you have been scammed and would like to file a scam report, please click here.

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